TORONTO - Shares in Centerra Gold Inc. (TSX:CG) plunged Monday after the company said it will shut down its Kumtor project if it doesn't receive long-awaited approvals from Kyrgyz Republic authorities by the end of next week.
The stock was down 97 cents or 21 per cent at $3.64 cents in trading on the Toronto Stock Exchange after the company announced the plan.
The company said it has been working unsuccessfully with government offices in the central Asian country since late last year to obtain the necessary approvals and permits for the mine.
"The continuing absence of such approval and permits creates significant uncertainty and risks for Centerra and its employees," Centerra said.
The company said if it does not receive the approval of its 2014 annual mine plan and related operating permits by the close of business on June 13, it will shut down the mine and mill operations.
Workers will continue with environmental and safety monitoring, security and essential maintenance of the mill and mine equipment.
In addition to Kumtor, Centerra owns the Boroo mine and Gatsuurt development property in Mongolia.